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Hooked on Finance:The science & psychology* behind habit forming Fintech apps
Nathan Fulwood@kidcamel
*not a doctor.
We help ambitiousbusinesses design remarkable
brand journeys.
We help ambitiousbusinesses design remarkable
brand journeys.
1.49bn 316m 900m 400m
(Remarkable brands being built via exceptional experience and the network effect)
Hooked, by Nir Eyal
“Hooked gives you the blueprint for the next generation of products. Read it or the company that replaces you will.”
Matt Mullenweg, founder of Wordpress
Every time you check your phone during this presentation, somewhere a kitten dies.
90% 42%
35% 43%
not saving enough never checked pension performance
regret not saving more wish they’d had more one night stands
http://www.moneywise.co.uk/news/2014-04-30/90-brits-not-saving-enough-retirementhttp://www.dailymail.co.uk/news/article-3236186/Our-number-one-regret-Not-saving-Putting-money-away-tops-list-50-things-Britons-differently-live-lives-again.html
✓Closer management, better finances✓Increased customer lifetime value (CLTV)✓Pricing flexibility✓Driving growth✓Creating competitive standout✓Front of mind = front of pack
Forming a healthy habit
The Hook model:
PAID TRIGGERS:Expensive and unsustainable for habit forming
Earned Triggers:
(unreliable and short lived)
Relationship Triggers:
(Word of mouth, recommendation, the network effect)
Owned Triggers:
(Post-engagement, opted in, driving re-engagement)
Triggers:
Paid Earned Relationship Internal
Acquisition Re-engagement
Progression of value
Internal Triggers
Help user’s scratch that itch.Associate your triggers with user’s state of mind.Eventually they won’t need an external trigger
(Taiichi Ohno, Legend)
THE FIVE WHYS? Why?Why?Why?Why?Why?
(keep asking Why? until you get to the base emotional need you have to satisfy)
TRIGGERS • Set up an Action• External or internal• Negative emotions frequently serve as internal
triggers• Understand your customer’s needs and align
your triggers with scratching that itch
The Hook model:
B=MATBehaviour = Motivation +
Ability + Trigger
Seek Pleasure Avoid Pain
CORE MOTIVATIONS:
Seek Hope Avoid Fear
CORE MOTIVATIONS:
Seek Social Acceptance Avoid Rejection
CORE MOTIVATIONS:
Understand the reason people use a product or service.Lay out the steps needed to get the job done.Start removing them until you reach the simplest possible process.
Easier = better.
Something Really New: Three Simple Steps to Creating Truly Innovative Products by Denis J. Hauptly (7 Nov 2007)
ABILITY
Time Money Physical Effort
Social Deviance
Non-routine
Brain Cycles
TIME:
TIME:
MONEY:
PHYSICAL EFFORT:
BRAIN CYCLES:
NON ROUTINE:
"I'd never struggled with understanding the importance of saving, but hated the exercise of doing it regularly and having to anticipate changes in my spending + income. Thankfully, now the trustworthy robots powering Digit do all that for me."
Time Money Physical Effort
Social Deviance
Non-routine
Brain Cycles
(Frederick II of Prussia and the introduction of potatoes. Google it. Genius move.)
HEURISTICS: Mental shortcuts we take to make decisions and form opinions.
AKA Persuasion architecture.
Learn them. Use them.
FRAMING EFFECT:
ENDOWED PROGRESS EFFECT:
ACTIONS • Simplest behaviour in anticipation of a reward• B=MAT• Pleasure vs Pain, Hope vs. Fear, Acceptance vs.
Rejection• Time, money, physical effort, brain cycles,
social deviance, non-routine• Heuristics are useful mental shortcuts to exploit
The Hook model:
REWARDS
Tribe Hunt Self(Attraction, inclusion,
community)
(Accumulation of resources, money and
knowledge)
(Intrinsic worth, completion, mastery)
Tribe:
Tribe:
Hunt:
Self:
VARIABLE REWARDS • 3 types of rewards:• Tribe - connectedness with others• Hunt - material resources & information• Self - master, competence and completion• Finite variability becomes predictable and less
appealing• Satisfy needs, but leave users wanting to
reengage
The Hook model:
The IKEA Effect:The more users invest time and effort into a product or service, the more they value it.
STORING VALUE: • Content• Data• Followers• Reputation• Skill
Content:
Simple.com
Reputation:
Fidor.com
Data:
Level
Sets up the next trigger
The Hook model:
(Don’t be a dick)
The Manipulation Index:
Improves the user’s life
Does not improve the user’s life
The maker would use it The maker wouldn’t use it
Peddler Facilitator
Dealer Entertainer
KEY TAKEOUTS • The brand is the experience• Understand your audience• Easier = better• Use the tips, but test and learn• Play nice
THANK YOU!